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Last Updated on: 24 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 505537 | NSE: ZEEL

Zee Entertainment Enterprises Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 22, 2024, 9:17 pm

Market Cap 11,254 Cr.
Current Price 117
High / Low300/114
Stock P/E26.3
Book Value 117
Dividend Yield0.85 %
ROCE6.26 %
ROE2.09 %
Face Value 1.00
PEG Ratio-1.54

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Zee Entertainment Enterprises Ltd

Competitors of Zee Entertainment Enterprises Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Hathway Bhawani Cabletel & Datacom Ltd 14.6 Cr. 18.023.7/16.2 1.990.00 %2.26 %2.26 % 10.0
G V Films Ltd 134 Cr. 0.721.20/0.46 0.610.00 %2.27 %2.08 % 1.00
Encash Entertainment Ltd 11.3 Cr. 29.029.0/29.0 21.30.00 %3.81 %3.93 % 10.0
Diksat Transworld Ltd 255 Cr. 146149/126245 14.40.00 %3.36 %4.21 % 10.0
Cyber Media (India) Ltd 42.9 Cr. 27.444.0/17.217.5 0.650.00 %45.5 %% 10.0
Industry Average3,544.73 Cr150.651,167.0452.880.16%37.18%10.95%5.86

All Competitor Stocks of Zee Entertainment Enterprises Ltd

Quarterly Result

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Sales1,9792,1132,3221,8432,0242,1092,1121,9842,4382,0462,1702,1302,001
Expenses1,5751,6391,7971,5751,7091,7371,9601,8252,1051,8361,9601,8601,678
Operating Profit403474525268315372152159333209210270323
OPM %20%22%23%15%16%18%7%8%14%10%10%13%16%
Other Income182-99-20-54-187-199-113-55-27-11-1745
Interest23388101340232318768
Depreciation60596071748483797776777673
Profit before tax35941432816917788-170-5717787115172286
Tax %26%28%45%37%36%72%15%-6%31%33%88%31%27%
Net Profit26629918210711324-196-531235913118209
EPS in Rs2.813.111.891.111.180.25-2.04-0.561.280.610.141.232.18

Last Updated: November 6, 2024, 7:30 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales3,7004,4224,8845,8126,4346,6867,9348,1307,7308,1868,0888,6378,784
Expenses2,7433,2153,6244,3864,7114,6055,3706,8706,1236,4096,9817,7267,761
Operating Profit9571,2071,2601,4271,7232,0812,5641,2601,6061,7771,1079111,023
OPM %26%27%26%25%27%31%32%15%21%22%14%11%12%
Other Income1441782221831,430565236112-29-111-460-207-110
Interest916101601371451301455744707254
Depreciation40506778115182235271265221313309306
Profit before tax1,0521,3191,4041,3732,9012,3192,4349561,2561,400264323552
Tax %32%33%31%40%23%36%36%45%37%32%82%56%
Net Profit7178909728242,2201,4781,56752579395648141313
EPS in Rs7.549.2910.188.5723.1315.4016.325.488.3310.040.501.473.26
Dividend Payout %27%24%22%26%11%19%21%5%30%30%804%68%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)24.13%9.21%-15.23%169.42%-33.42%6.02%-66.50%51.05%20.55%-94.98%193.75%
Change in YoY Net Profit Growth (%)0.00%-14.91%-24.44%184.64%-202.84%39.45%-72.52%117.54%-30.49%-115.53%288.73%

Zee Entertainment Enterprises Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:7%
5 Years:2%
3 Years:4%
TTM:-3%
Compounded Profit Growth
10 Years:-13%
5 Years:-32%
3 Years:-36%
TTM:37%
Stock Price CAGR
10 Years:-11%
5 Years:-18%
3 Years:-30%
1 Year:-54%
Return on Equity
10 Years:11%
5 Years:6%
3 Years:4%
Last Year:2%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 6:32 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital95969696969696969696969696
Reserves3,8162,6253,4354,7086,5947,4668,8289,2489,99810,76710,62610,77711,161
Borrowings32,0202,0211,7162,2031,5261,11465042376282230330
Other Liabilities1,1601,2911,4541,4461,3642,0422,8952,4242,3012,3002,7242,3471,932
Total Liabilities5,0746,0327,0067,96610,25811,13012,93312,41812,81913,24013,72813,45013,520
Fixed Assets9911,0731,1381,3339161,4761,4141,3151,1911,2251,3601,2041,083
CWIP71008811015692156837587191011
Investments7928299761,1481,3431,529976325798653539640
Other Assets3,2854,0304,8055,3757,8438,03310,38610,69510,75411,86212,31512,19711,785
Total Assets5,0746,0327,0067,96610,25811,13012,93312,41812,81913,24013,72813,45013,520

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +3873836817317415541352501,548280129714
Cash from Investing Activity +46-205-165161,325-1,041864397-511586-202-46
Cash from Financing Activity +-229-144-343-405-414-1,090-966-1,062-541-715-408-274
Net Cash Flow204341733421,652-1,57733-415496150-481395

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow954.00-1.00-1.000.00-1.001.001.00-649.00-422.00-75.00-281.00681.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days988580857084849692777372
Inventory Days526617624644824877
Days Payable230239196167177210
Cash Conversion Cycle988580857038046352456972574072
Working Capital Days132156152147151180236294296341354328
ROCE %28%31%27%26%24%26%27%14%14%16%8%7%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters3.99%3.99%3.99%3.99%3.99%3.99%3.99%3.99%3.99%3.99%3.99%3.99%
FIIs57.18%52.21%47.86%39.18%38.65%37.33%36.39%33.40%35.00%28.19%19.18%18.90%
DIIs15.98%20.87%24.19%30.51%31.30%37.33%38.03%40.62%42.07%43.42%35.30%22.27%
Government0.15%0.15%0.15%0.15%0.15%0.15%0.15%0.15%0.15%0.15%0.15%0.15%
Public22.70%22.78%23.81%26.17%25.93%21.20%21.43%21.85%18.80%24.24%41.38%54.67%
No. of Shareholders4,13,5433,75,6454,03,8854,33,1884,18,4564,19,0414,14,8154,63,8303,97,7434,08,5186,27,6256,03,271

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Nippon India Multi Cap Fund10,000,0000.67173.12,745,0002024-11-23264.3%
Nippon India Growth Fund8,257,0000.59142.932,745,0002024-11-23200.8%
Nippon India Arbitrage Fund7,854,0001.04135.952,745,0002024-11-23186.12%
DSP Arbitrage Fund7,389,0003.38127.92,745,0002024-11-23169.18%
Invesco India Arbitrage Fund4,623,0001.07126.992,745,0002024-11-2368.42%
SBI Arbitrage Opportunities Fund6,801,0000.44117.732,745,0002024-11-23147.76%
Nippon India Large Cap Fund5,000,0000.486.552,745,0002024-11-2382.15%
Edelweiss Arbitrage Fund2,745,0000.5847.522,745,0002024-11-230%
UTI Arbitrage Fund2,715,0001.05472,745,0002024-11-23-1.09%
DSP Dynamic Asset Allocation Fund2,586,0001.4144.762,745,0002024-11-23-5.79%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)1.472.6210.048.335.48
Diluted EPS (Rs.)1.472.6210.048.335.48
Cash EPS (Rs.)4.693.7512.5011.018.31
Book Value[Excl.RevalReserv]/Share (Rs.)113.19111.57113.04105.1897.45
Book Value[Incl.RevalReserv]/Share (Rs.)113.19111.57113.04105.1897.45
Revenue From Operations / Share (Rs.)89.9184.1685.2280.4484.69
PBDIT / Share (Rs.)10.8312.3519.1417.7317.28
PBIT / Share (Rs.)7.619.0916.5814.9814.46
PBT / Share (Rs.)3.964.8714.7313.079.99
Net Profit / Share (Rs.)1.470.499.948.255.49
NP After MI And SOA / Share (Rs.)1.470.4910.048.335.48
PBDIT Margin (%)12.0414.6722.4622.0420.40
PBIT Margin (%)8.4610.8019.4618.6217.07
PBT Margin (%)4.405.7817.2816.2411.79
Net Profit Margin (%)1.630.5911.6710.266.48
NP After MI And SOA Margin (%)1.630.5911.7710.356.47
Return on Networth / Equity (%)1.300.448.877.925.63
Return on Capital Employeed (%)6.527.8914.4513.9914.09
Return On Assets (%)1.050.347.286.244.25
Long Term Debt / Equity (X)0.000.000.000.000.01
Total Debt / Equity (X)0.000.000.000.000.01
Asset Turnover Ratio (%)0.630.590.600.560.61
Current Ratio (X)5.004.295.034.234.03
Quick Ratio (X)1.921.542.152.101.92
Dividend Payout Ratio (NP) (%)0.000.0024.893.5963.85
Dividend Payout Ratio (CP) (%)0.000.0019.832.7042.17
Earning Retention Ratio (%)0.000.0075.1196.4136.15
Cash Earning Retention Ratio (%)0.000.0080.1797.3057.83
Interest Coverage Ratio (X)14.4316.9040.7929.8511.45
Interest Coverage Ratio (Post Tax) (X)7.629.3625.1517.116.60
Enterprise Value (Cr.)12135.8319546.2726431.0318464.4211530.60
EV / Net Operating Revenue (X)1.412.423.232.391.42
EV / EBITDA (X)11.6716.4714.3710.836.95
MarketCap / Net Operating Revenue (X)1.542.523.382.531.46
Retention Ratios (%)0.000.0075.1096.4036.14
Price / BV (X)1.231.902.551.931.27
Price / Net Operating Revenue (X)1.542.523.382.531.46
EarningsYield0.010.000.030.040.04

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Zee Entertainment Enterprises Ltd as of November 24, 2024 is: 64.86

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 24, 2024, Zee Entertainment Enterprises Ltd is Overvalued by 44.56% compared to the current share price 117.00

Intrinsic Value of Zee Entertainment Enterprises Ltd as of November 24, 2024 is: 53.76

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 24, 2024, Zee Entertainment Enterprises Ltd is Overvalued by 54.05% compared to the current share price 117.00

Last 5 Year EPS CAGR: -17.11%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 20.67%, which is a positive sign.
  2. The company has higher reserves (7,696.08 cr) compared to borrowings (968.77 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (6.31 cr) and profit (162.08 cr) over the years.
  1. The stock has a high average Working Capital Days of 230.58, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 324.25, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Zee Entertainment Enterprises Ltd:
    1. Net Profit Margin: 1.63%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 6.52% (Industry Average ROCE: 37.18%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 1.3% (Industry Average ROE: 10.95%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 7.62
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.92
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 26.3 (Industry average Stock P/E: 1)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Zee Entertainment Enterprises Ltd. is a Public Limited Listed company incorporated on 25/11/1982 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L92132MH1982PLC028767 and registration number is 028767. Currently Company is involved in the business activities of Television programming and broadcasting activities. Company’s Total Operating Revenue is Rs. 7511.10 Cr. and Equity Capital is Rs. 96.10 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Entertainment & Media18th Floor, A Wing, Mumbai Maharashtra 400013shareservice@zee.com
http://www.zee.com
Management
NamePosition Held
Dr. Subhash ChandraChairman Emeritus
Mr. R GopalanChairman & Ind.Director
Mr. Punit GoenkaManaging Director & CEO
Dr. Venkata Ramana Murthy PinisettiIndependent Director
Mr. Shishir Babubhai DesaiIndependent Director
Mr. Uttam Prakash AgarwalIndependent Director
Ms. Deepu BansalIndependent Director

FAQ

What is the latest intrinsic value of Zee Entertainment Enterprises Ltd?

The latest intrinsic value of Zee Entertainment Enterprises Ltd as on 24 November 2024 is ₹64.86, which is 44.56% lower than the current market price of ₹117.00.

What is the Market Cap of Zee Entertainment Enterprises Ltd?

The Market Cap of Zee Entertainment Enterprises Ltd is 11,254 Cr..

What is the current Stock Price of Zee Entertainment Enterprises Ltd as on 24 November 2024?

The current stock price of Zee Entertainment Enterprises Ltd as on 24 November 2024 is 117.

What is the High / Low of Zee Entertainment Enterprises Ltd stocks in FY 2024?

In FY 2024, the High / Low of Zee Entertainment Enterprises Ltd stocks is 300/114.

What is the Stock P/E of Zee Entertainment Enterprises Ltd?

The Stock P/E of Zee Entertainment Enterprises Ltd is 26.3.

What is the Book Value of Zee Entertainment Enterprises Ltd?

The Book Value of Zee Entertainment Enterprises Ltd is 117.

What is the Dividend Yield of Zee Entertainment Enterprises Ltd?

The Dividend Yield of Zee Entertainment Enterprises Ltd is 0.85 %.

What is the ROCE of Zee Entertainment Enterprises Ltd?

The ROCE of Zee Entertainment Enterprises Ltd is 6.26 %.

What is the ROE of Zee Entertainment Enterprises Ltd?

The ROE of Zee Entertainment Enterprises Ltd is 2.09 %.

What is the Face Value of Zee Entertainment Enterprises Ltd?

The Face Value of Zee Entertainment Enterprises Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Zee Entertainment Enterprises Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE